A New York Lender Files Lawsuit Over Libor Scandal

7/30/2012 8:11AM

A New York lender alleges in a lawsuit that it was cheated out of interest income because rates on loans tied to Libor were "artificially" depressed. Heard on the Street's Simon Nixon explains why the Libor scandal still has a long way to run. Photo: Getty Images

This transcript has been automatically generated and may not be 100% accurate.

I ... the the ... it'll ... still ... be lulled ... into a ... the scandal is taken on a new dimension with all of ... you who are proposing to soothe the sixteen banks ... that set the liable rate in the summer of two thousand and seven ... in May twenty ten ... for losses ... Simon Nixon is that explain just why it is so important ... Simon on ... the liable rate is the center of so much in the banking world isn't it ... and in the pilot brought in hundreds of trillions of dollars of contracts are based on the model right ... and to ... the Doherty been quite a few ... legal actions of being the percentage of whatever the reason model breaking ... this new one is interesting because ... it is ... that this this from Topshop but this is a vegging ... olds ... the haunted which I Shire's is that which I should ... it ... is the Fed is ... accepted by the court should make it all he seemed to ... to get such damages from the fact that this could alter the awful sixteen of the banks set the live blogs cause is a daily basis ... is essentially them back ... to the tothe to wait in which banks lend to one another with him yet that that all the market was important as well of course is that the book is already set out the nose losses haven't installed CEO Scott already but that that that that it was all this to be seen by some people as well um it's just suggesting head that this that this move I've bought by ... leverage morning so the odds ... when it just makes it much the races of the the the ... if the judge he races for either the ... city state's all the facts are quite a long way until now but ... the very soul sixteen ... people at the Pursell narrative that can be anti trust ... cases ... to to to the vehicle partial about would require ... the ... people bringing cases to ... submit to show that the banks of commissions to re delightful ... but it but that for the auction cases times since the ... bank's description role which makes the day that we lost money on the family deceitful above ... all within these e mails that of being disclosed so far this ... one moment ... on the face of it but over the evidence that ... the banks knew it was doing was wrong and set ... it back to be present ... of course it was the weights of tension much traceable suspension people that the ... what all fasten the set up in the OT with a Wall Street Journal say ... that this could be the asbestos claims of this entry amazes us that this could run and run and run some time to go what a man of what's ... clear is that it's gonna be huge on Sutton's Iran is interesting is how much can ... read it here even these can be very hard ... to prosecute it's going to get the companies listed on all the years and years but ... they know you that the so the numbers that they've been putting out that mean a ... reporter from three of ... their one the Messiah that was a source of forty two billion dollars of the vehicle damages for the industry ... when you know the numbers that ... you're going off and so ... it's an enormous of Oz is is it mean for the sixteen backs the center of this post to ... this but it's pretty bad news indeed event ... also mentioned the ... book is already lost chairman and CEO down this morning and HSBC is the thing that is on the ... up having to set aside money because it's all a lot of things and yes ... it is like his old saying about to access ... the site of the time I miss my ... urine on the stops morning the nation state ... in which it said ... leaving aside the legacy issues the biggest issues consider the assistant Opel Eyeful scandal ... an enormous ... losses of the setting apart of protection insurance ... that was something that interest rates will Smith's ... compared to the whole spirit be as of the appointees of ... the company's biggest issues are enormous engulfing the ore fines ... look this is that the banks of the things that backs and even more political pressure ... to base the reform at the end except the reforms that all this is actually see ... their art but think that it's going to be a bit this is all we can as of this big rig Ocean backlash ... coming ... through as well and a ... yet that I think the banks again be unfair and given his committal first change that people are running these banks which are stress that this is mortals I think that we are reducing beginning of this crisis is chemical group ... of